Mack Trucks has strong 2011

Truckmaker reports good sales for the year as companies replace aging fleets.

February 03, 2012|By Tyrone Richardson, Of The Morning Call

Mack Trucks' turnaround continues.

Mack, which is based in Greensboro, N.C., but produces all rigs at its Lower Macungie Township plant, produced 20,277 rigs in 2011, up 51 percent compared with 2010, the company reported Friday.

The year's total included 2,426 rigs produced in December, Mack's strongest month of deliveries since December 2006.

Mack officials have said that even though markets such as construction continue to be down in the sluggish economy, there is strong demand for highway rigs that pull trailers and are used in shipping.

Last year marked the second consecutive year Mack has reported an increase in production. In 2010, Mack produced 13,465 rigs, 21 percent more than 2009, which was the truckmaker's worst year in at least a decade.

Like most truckmakers, Mack, a subsidiary of Sweden'sVolvo AB, was hit hard in recent years by slowdowns in key industries, such as construction and shipping.

Truckmakers have been showing signs of a rebound in the last two years as companies replace aging fleets, industry officials have said.

Volvo also reported Friday that its fourth-quarter earnings before interest and taxes rose to 6.96 billion kronor ($1.03 billion) from 5.52 billion kronor a year earlier.

In addition to Mack, Volvo AB owns truckmakers Volvo and Renault.

Mack's 2011 production tally even beat some pre-recession totals, such as the 18,621 rigs it produced in 2007.

The surge in truck demand prompted the recent addition of 200 workers at Mack's Lower Macungie plant, which employs more than 1,000 workers. The company has also been featured in several movie and television features, which company officials believe could be boosting sales.